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February is for Facebook

Tuesday, 07 February 2012

Capitalism sometimes works miracles. Just consider the story behind social media giant Facebook. Eight years ago, some kid built a website in his dorm room. Then, because some wise 1%-ers risked their money, the website quickly grew to a very successful company.

On February first, Facebook filed paperwork for an Initial Public Offering [IPO] with the Securities and Exchange Commission. With that, they divulged scores of closely-held company secrets.

In May, that same company will sell shares to the public. When that happens, it will create more than 1,000 millionaires in an instant. In that same moment, and as a blow against another kind of inequality, one Facebook executive will be thrust towards becoming the world's wealthiest self-made woman, a title she could nab as early as 2017. The 1%-ers will see an exponential return on their investment.

In the months that will follow, some of those millionaires will buy cars and houses. Many of them, now 1%-ers themselves, will launch or invest in a company that could be the next Facebook.

It's a miracle... or is it an example of capitalism at its finest moment?

Check back here for weekly updates on the social media storm throughout February.

To kick off our "February is for Facebook" blogs, let's examine some financial metrics:

 

Facebook's IPO Infographic 

NABCAP Premier Advisor 2011

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